Equity markets in the UAE opened lower on Monday, with both Dubai and Abu Dhabi bourses extending the regional sell-off triggered by new US tariffs and a global market downturn.

Dubai’s DFM General Index (DFMGI) dropped 3.91 per cent to close at 4,757.85 just after midday, shedding nearly 194 points. The market recorded a total trading value of Dhs859.8m across more than 18,000 trades. Sentiment remained firmly risk-off following Sunday’s heavy losses across the Gulf and broader MENA markets.

Emaar led losses by value on the Dubai Financial Market, falling 4.6 per cent to Dhs11.30. Dubai Islamic Bank followed with a 4.58 per cent fall to Dhs6.87. Emaar Development was down 5.94 per cent, while Talabat shares fell around 9 per cent, making it one of the day’s steepest decliners.

Other notable names in Dubai also ended deep in the red. SALIK dropped around 3 per cent to Dhs4.94, while Emirates NBD held steady at around Dhs19.15. Heavy trading volume was concentrated in Emaar, DIB and Talabat shares.

In Abu Dhabi, the story was similar. The FTSE ADX General Index (FADGI) sank 2.9 per cent to 8,920.62 just after midday, recovering slightly in late trade after plunging below 8,800 points in early morning deals. The sell-off was broad-based, led by large caps.

ADNOC Gas fell 5.98 per cent to Dhs2.83, while Aldar Properties shed 5.44 per cent to Dhs7.30. Abu Dhabi Commercial Bank (ADCB) dropped 4.43 per cent, and Abu Dhabi Islamic Bank (ADIB) slid 3.67 per cent. IHC, despite its high share price of Dhs401.60, fell 1.54 per cent and remained among the most active by value.

The losses across the UAE markets reflect investor concern over rising global tensions following the US’s imposition of sweeping new import tariffs, including a 10 per cent levy on Gulf exports. The move has stoked fears of a broader trade war, weakening oil prices and hammering sentiment across emerging markets.

Meanwhile, Saudi Arabia’s Tadawul All Share Index (TASI) showed signs of recovery on Monday. After plunging just over 6 per cent on Sunday in its biggest drop since 2020, the index rebounded 0.9 per cent on Monday to close at 11,176.41, regaining nearly 100 points and partially clawing back yesterday’s steep losses.

Read more: Saudi stocks plunge by $133bn in biggest fall since 2020

Investor appetite in the Gulf is evolving, says Mohamed Ebeid, co-chief executive officer of EFG Hermes, an EFG Holding company, with a shift toward quality issuers, long-term capital, and sector-focused plays in tech, healthcare and education

The GCC IPO pipeline has remained resilient despite global headwinds. What’s your current assessment of investor appetite for IPOs in the region, particularly in markets like Saudi Arabia and the UAE?

Investor appetite in the region remains strong across local, regional, and international participants. That said, over the past 12 months we’ve observed a shift toward greater selectivity. Investors are now more focused on specific sectors and high-quality issuers rather than participating across the board.

Additionally, recent corrections in regional equity markets have moderated valuation expectations, placing more scrutiny on new issuance pricing to ensure alignment with current market realities.

EFG Hermes acted as joint bookrunner on Alpha Data’s recent DFM listing. How did that IPO perform relative to expectations, and what does it tell us about the tech and digital services investment story in the UAE?

The Alpha Data IPO outperformed other recent equity offerings in the UAE . While the transaction size was more modest than others, investor interest was high, reflecting strong confidence in the company’s fundamentals.

Alpha Data’s established market position, consistent profitability, and diversified service offering— particularly in IT infrastructure and digital transformation — resonated well with both institutional and retail investors.

The deal underlines growing investor appetite for profitable, scalable tech companies that are driving innovation and operational excellence in the UAE.

Valu has been one of MENA’s most talked-about fintechs — what’s the latest on its potential IPO, and how is EFG approaching the timing and structure for a listing?

The EFG Holding board has just announced a first-of-its-kind transaction, where it will distribute 20 per cent of Valu to its shareholders in the coming months. With this distribution, the company will become listed on the EGX and traded freely by all. Following the board’s approval, we will be approaching our general meeting for their approval in May, with trading expected to take place in June.

How are institutional investors currently viewing GCC IPOs? Are we seeing more long-term capital come in, or is there still a tilt toward short-term gains post-listing?

We’ve seen a significant structural evolution in the GCC equity capital markets over the past three years. Sovereign wealth funds’ capital recycling programmes, consistent allocations to regional asset managers, and wealth creation among family offices, particularly in light of major infrastructure investments, have all contributed to a more stable and maturing investor base. This has fostered a healthy supply-demand dynamic and increased long-term participation. While short-term gains remain attractive to certain retail investors and hedge funds, the overall trend is toward a more strategic, long-term investment approach.

Looking ahead, which sectors do you see as the next big IPO plays in the GCC, and how is EFG positioning itself to lead or participate in those future deals?

We believe consumer, healthcare and education sectors will remain top of mind for institutional investors, offering compelling opportunities for IPOs in the region. At EFG Hermes, our strategy emphasises early engagement, bringing together prospective issuers and investors well before a transaction is live. This approach allows us to shape and refine the equity story collaboratively, ensuring both parties are aligned and well-prepared when the company decides to come to market. It also enables us to provide valuable investor feedback early on, helping companies optimse their positioning and readiness.

Major stock indexes plunged in Asia on Monday as US President Donald Trump showed no sign of backing away from his sweeping tariff plans, and investors bet the mounting risk of recession could see the Federal Reserve cutting rates as early as May.

Futures markets moved swiftly to price in almost five quarter-point cuts in US rates this year, pulling Treasury yields down sharply and hampering the dollar on safe havens.

The carnage came as Trump told reporters that investors would have to take their medicine and he would not do a deal with China until the US trade deficit was sorted out. Beijing declared the markets had spoken on their retaliation plans.

“The only real circuit breaker is President Trump’s iPhone and he is showing little sign that the market selloff is bothering him enough to reconsider a policy stance he has believed in for decades,” said Sean Callow, a senior FX analyst at ITC Markets in Sydney.

Read more: Saudi stocks plunge by $133bn in biggest fall since 2020

Investors had thought the loss of trillions of dollars in wealth and the likely body blow to the economy would make Trump reconsider his plans.

“The size and disruptive impact of US trade policies, if sustained, would be sufficient to tip a still healthy US and global expansion into recession,” said Bruce Kasman, head of economics at JPMorgan, putting the risk of a downturn at 60 per cent.

“We continue to expect a first Fed easing in June,” he added. “However, we now think the Committee cuts at every meeting through January, bringing the top of the funds rate target range down to 3.0 per cent.”

S&P 500 futures slid 3.5 per cent in volatile trade, while Nasdaq futures dived 4.4 per cent, adding to last week’s almost $6 trillion in market losses.

The pain likewise engulfed Europe, with EUROSTOXX 50 futures down 3.6 per cent, while FTSE futures lost 2.3 per cent and DAX futures 4.0 per cent.

Japan’s Nikkei sank 6.6 per cent to hit lows last seen in late 2023, while South Korea dropped 5 per cent. MSCI’s broadest index of Asia-Pacific shares outside Japan fell a gut-wrenching 7.5 per cent.

Chinese blue chips lost 6.3 per cent, as markets waited to see if Beijing would respond with more stimulus. Taiwan’s main index, which had been shut on Thursday and Friday, tumbled nearly 10 per cent, leading policymakers to curb short selling.

All of emerging Asia was also under water, with India’s Nifty 50 sinking 4 per cent.

The gloomier outlook for global growth kept oil prices under heavy pressure, following steep losses last week.

Brent fell $1.35 to $64.23 a barrel, while US crude dived $1.395 to $60.60 per barrel.

Read more: Trump tariffs: More than $5tn wiped off markets in two days

Never mind inflation

The flight to safe havens saw 10-year Treasury yields drop 8 basis points to 3.916 per cent, while Fed fund futures jumped to price in an extra quarter-point rate cut from the Federal Reserve this year.

Markets swung to imply around a 54 per cent chance the Fed could cut as soon as May, even though Chair Jerome Powell on Friday said the central bank was in no hurry on rates.

That dovish turn saw the dollar slip another 0.5 per cent on the safe-haven Japanese yen to 146.16 yen, while the euro held firm at $1.0966. The dollar shed 0.6 per cent on the Swiss franc, while the trade-exposed Australian dollar dropped a further 0.4 per cent.

Investors were also wagering that the imminent threat of recession would outweigh the likely upward shove to inflation from tariffs.

US consumer price figures out later this week are expected to show another rise of 0.3 per cent for March, but analysts assume it is just a matter of time before tariffs push prices sharply higher, for everything from food to cars.

Rising costs will also put pressure on company profit margins, just as the earnings season gets underway with some of the big banks due on Friday. Around 87 per cent of US companies will report between April 11 and May 9.

“We expect during upcoming quarterly earnings calls fewer companies than usual will provide forward guidance for both Q2 and full-year 2025,” analysts at Goldman Sachs said in a note.

“Rising tariff rates will force many companies to either raise prices or accept lower profit margins,” they warned. “We expect negative revisions to consensus profit margin estimates in coming quarters.”

Even gold was swept up in the selloff, easing 0.3 per cent to $3,026 an ounce.

The drop left dealers wondering if investors were taking profits where they could to cover losses and margin calls on other assets, in what could turn into a self-feeding fire sale.

Saudi Arabia, the world’s top oil exporter, on Sunday slashed crude oil prices for Asian buyers in May to their lowest in four months, following a recent shock decision by the OPEC+ oil group to speed up oil output hikes.

State oil company Saudi Aramco cut the May official selling price (OSP) for flagship Arab Light crude by $2.30 to $1.20 a barrel above the average of Oman and Dubai prices, a pricing document from the producer showed.

Read-Saudi stocks plunge by $133bn in biggest fall since 2020

The drop marks the biggest decline in more than two years and is the second consecutive month Aramco has lowered its prices, Reuters record of Saudi OSPs showed.

The company also lowered May prices for other grades it sells to Asia by $2.30 per barrel.

Decision of OPEC+ countries

Eight OPEC+ countries in a surprise decision agreed on Thursday to advance their plan to phase out oil output cuts by increasing output by 411,000 barrels per day in May, triple the expected increase, representing around 0.4 per cent of global supply.

The news, together with an escalating global trade war, sent oil prices plunging nearly 11 per cent in the week ending April 4, hitting more than three-year lows.

Prior to the latest decision by OPEC+, analysts surveyed by Reuters had expected Arab Light for Asia to be cut by $1.80 to $2, tracking the steep declines in benchmark prices in March.

The spot premium of Dubai averaged $1.38 per barrel in March, down from $3.33 per barrel, the average in February. The drops were also due to more Russian supply returning to Asia, following disruptions in January and February caused by US sanctions on Russian energy trade.

The tables below show the full free-on-board (FOB) prices for May in US dollars.

Vortex Energy, part of the private equity business of EFG Hermes, an EFG Holding company, and the leading investment bank in the MENA, is driving sustainable growth with strategic investments in energy transition globally.

As the global shift toward a net-zero future gains momentum, Vortex Energy is expanding its reach and scope to cover wider energy transition sectors and geographies. Launched in 2014, it has built an impressive portfolio of companies that operate in wind, solar, electric vehicle changing, hydrogen and batteries globally, strategically expanding its assets under management.

In this interview, Bakr Abdel-Wahab, CIO of Vortex Energy, delves into how the platform has solidified its position in the energy transition market and discusses the future plans to encompass sustainable digital infrastructure investments.

Tell us more about Vortex Energy and what are your key priorities for growth going forward?

We launched with a focus on renewable energy investments in Europe, recognizing 2 key drivers: the push for energy security and diversification of energy sources, as well as meeting global climate net zero targets and EU green directives.

We began with 3 funds, with AUMs that peaked at around €1.3bn, or approximately $1.4bn. The journey started with identifying an opportunity in France, where we created Vortex I. We acquired a 49 per cent stake in a portfolio of wind assets operated by EDPR – one of the world’s largest owners and operators of wind power at the time. The investment amount was c.€170m, primarily funded by Abu Dhabi sovereign wealth funds.

A year later, we launched Vortex II, a €560m investment covering 664 MW of operating and under construction wind assets in Spain, Portugal, France, and Belgium. These investments were underpinned by long-term feed-in-tariffs and PPAs, generating double-digit internal rates of return (IRRs) in an environment of low interest rates. The rationale behind these investments was their robust electricity tariffs, yielding steady cash flows and stable regulatory frameworks.

For instance, Portugal at the time was sub-investment grade, but we anticipated a credit rating upgrade as part of the investment rationale. Spain was recovering from retroactive regulatory changes, but we saw value due to the quality of the operator and site-specific advantages.

By 2017, we launched Vortex III, focusing on solar assets in the UK under the Renewable Obligation Certificates (ROCs) scheme, which provided government-backed incentives. We acquired 24 operating and under construction solar assets outright from SunEdison, an operator which later was undergoing bankruptcy, enabling us to secure a competitive deal. This was a £500mn deal funded by Malaysian institutional investors and managed by our London-based asset management team.

Between 2019 and 2020, we exited Vortex I and II to JP Morgan Infrastructure and Vortex III to a Malaysian utility, achieving returns of 13-15 per cent IRR. This marked a successful phase of astute origination, financial engineering and operational optimisation, culminating in top quartile returns for our investors.

Vortex has undergone significant transformations. How did your strategy shift after 2020?

Post-2020, the global industry landscape changed. In response to this, we began taking on development risks and shifted toward investing in development platforms and companies versus projects and portfolios. This approach transformed us into a private equity-style investor, funding not only project development but also company growth.

We also noticed emerging trends such as decarbonisation, electrification of transport, and advancements in energy storage. This broadened our focus from renewable energy to the broader concept of energy transition, including e-mobility, battery storage, and hydrogen.

In response, we launched Vortex IV in 2021, an energy transition-focused fund and co-investment vehicle with $400m in AUM. It was backed by a wide range of investors, including Abu Dhabi SWFs, global asset managers, and European family offices. Since 2022, we’ve made two significant investments:

1-Ignis Energy: A renewable energy platform with +12 GW globally, with operations in Spain, Italy, UK, USA, Peru, and the Philippines. It covers solar and wind development, operations, energy management and green hydrogen.

2-EO Charging: A UK-based company specialising in EV charging for fleets and buses, serving clients like Amazon and DHL in UK and USA. This aligns with our focus on scalable and captive charging solutions.

Looking ahead, could you launch ‘Vortex V’? Added to this, are there any emerging trends you’re observing in the market?

While we haven’t officially labelled it Vortex V, we are exploring opportunities in data centres, particularly in Spain, leveraging synergies with Ignis’ renewable energy assets. Madrid is an emerging city in the digital space and strategically located data centres are increasingly sought after by hyperscalers such as Google and Amazon. We are fine tuning this investment programme at present.

We’re also planning an emerging markets climate fund targeting Central and Southeast Europe, Latin America, and Africa. This fund will focus on renewable energy, energy storage, hydrogen, and circular economy initiatives, addressing the global south’s growing demand for sustainable infrastructure. We have identified 2 early deals to seed this fund. We are excited about this initiative which follows the COP 28 recommendations.

How have government-backed incentives changed, and how does that impact your strategy?

Feed-in tariffs have largely been phased out. The current landscape revolves around private corporate power purchase agreements (PPAs) and government auctions. Corporate PPAs often offer higher returns, but declining renewable energy prices are challenging project economics in certain markets like Germany. As a result, we’re focusing on markets with greater growth potential, green power shortfall and supportive policies.

How does Vortex Energy differentiate itself from other financial investors in the sector?

Our unique selling proposition lies in our hybrid investment approach, combining private equity-style investing with infrastructure characteristics. We’re hands-on, focusing on a few portfolio companies to drive value through growth initiatives and cost optimisation.. Additionally, our Abu Dhabi presence ensures we continue our close collaboration with investors; reinforcing trust and alignment.

Lastly, what are the biggest challenges to achieving global net-zero targets, and how can Vortex Energy contribute to this transition?

Achieving net-zero requires, amongst other areas, scaling renewable energy capacity drastically, but this must be paired with structural changes to power markets. Low power prices, because of cannibalisation, for renewables can hinder development in certain countries. Energy efficiency is another key pillar – reducing losses, focusing on smart energy management and improving grid stability through AI and technology.